In previous entries in the series on business negotiation, we have addressed the topics of preparation for negotiations and negotiation styles. Since negotiation is a vast and extremely complex topic, it is also useful to know what types of negotiation there are and how each type of negotiation can take place. This time, we will focus on international negotiations.
International negotiations - are they different from negotiations with compatriots?
The main challenge here is the participation of participants from different cultural backgrounds. This diversity can often be a factor that hinders conversations. And it is not a question of vocabulary, because these we can have mastered to perfection, regardless of the language we are speaking.
What is extremely important at the stage of preparation for international negotiations is, first of all, to know thoroughly the culture of the country from which our counterparty comes. Without a thorough knowledge of the customs and values he or she follows because of his or her origin, we should not start discussions. We must remember that what may seem completely normal or unimportant from our point of view, for the other party may be a factor influencing the further course of the talks, and in some situations even be considered offensive and lead to the breaking off of the talks.
Cultural dimensions in international negotiations. What are their characteristics?
Below are the dimensions of cultures, as developed by Geert Hofstede. Knowing them can greatly facilitate preparation for international negotiations and ultimately lead to a positive outcome.
Avoiding uncertainty - a dimension linking the search for order and structures while respecting the law
Power distance - a dimension indicating a prevailing political system in which power is not connected to the public. There is a complex bureaucratic system and citizens have limited access to governing power. It also has to do with social hierarchy and, in business, a loose or rigid approach to levels within an organisation.
Institutional collectivism - involves the distribution of one's own wealth. It can mean, for example, highly developed or outright social welfare.
Group collectivism - On the basis of this dimension, it is possible to determine an individual's affiliation to specific social groups and the strength of attachment. Characteristic here is the willingness to sacrifice for the common good at one's own expense.
Gender equality - dimension presenting extreme views: either supporting equality or, on the contrary, inequality.
Assertiveness-stance - own views are expressed in a confrontational and assertive manner. It concerns attitudes towards both other individuals and organisations or the state itself.
Forward-looking orientation - With this dimension, it is possible to identify an orientation towards spontaneity or towards planning and subordinating present actions to the future. It also expresses the need to place plans in time, because in some cultures there is a principle that saying „I will do it in a while” can mean that it will happen in a dozen or several decades.
Task orientation - A dimension focused on being successful and rewarded by the environment and the state. Found mainly in countries where success is their domain.
Humanitarian orientation - dimension, which identifies how an individual is rewarded for altruistic and pro-social behaviour. It also emphasises the importance of this type of behaviour in society.
Other aspects affecting the conduct of international negotiations
The above dimensions make it possible to determine quite accurately what type of culture we will be dealing with during the interviews. However, these are not the only factors that can influence their course. In addition to the cultural dimensions, it is also worth taking into account:
- Political and legal pluralism, i.e. the current political system
- Level of bureaucracy between government and organisations
- Degree of political and economic stability
- The current prevailing ideology and political tendencies
- Negotiation habits in a given culture
In order to conduct effective negotiation, including international ones, you need to have the right foundations in place. Therefore, if international contracts are taking place in your company or you have them in the near future, it is certainly worth improving the competence of your team by providing them with a professional business workshops. In the case of strategic contracts, it can also help to negotiating sparring partner. When, on the other hand, this type of negotiation occurs occasionally, it is worth considering an option such as „negotiations on behalf of”. Negotiation experts will then do this not easy task for you.
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